# In the matter of Bestways Transport (India) Ltd. CP (IB) 30-Chd-Hry-2019

> NCLT judgment dated 2021-03-26. Citation: TCN-2021-NCLT-02547. The case pertains to an application filed under Section 9 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 26 Mar 2021
- **Citation:** TCN-2021-NCLT-02547
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/bestways-transport-india-ltd-cp-ib-30-chd-hry-2019-548e2132

## Summary

### Background

The case pertains to an application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 by M/s Pawan Cargo Forwards (P) Ltd. (Operational Creditor) against M/s Bestways Transport (India) Ltd. (Corporate Debtor) for initiating the Corporate Insolvency Resolution Process (CIRP). The operational creditor claimed that the corporate debtor defaulted on payments for services rendered between 2011 and 2013. The corporate debtor argued that the claim was time-barred and that the email acknowledging the debt was not authorized. The NCLT Chandigarh Bench examined the facts and arguments presented by both parties.

## Facts

M/s Pawan Cargo Forwards (P) Ltd. (Operational Creditor) filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, against M/s Bestways Transport (India) Ltd. (Corporate Debtor) seeking initiation of CIRP. The corporate debtor was incorporated on 16.11.1983. The operational creditor claimed that the corporate debtor had approached them in 2011 and booked several consignments for delivery. The operational creditor rendered services on a credit basis. The corporate debtor acknowledged its liability via emails dated 29.10.2012 and 18.11.2015. The total amount due was ₹5,32,61,032 including 24% interest per annum as of 01.03.2018, arising from unpaid invoices between 30.09.2011 and 15.05.2013. Demand notices were issued on 21.09.2015 and 25.10.2015. The

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## Issues and analysis

### Issue 1: Whether the petition filed by the operational creditor under Section 9 of the Insolvency and …

**Ratio:** Section 9 of the Insolvency and Bankruptcy Code, 2016 allows an operational creditor to

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**Reasoning:** The NCLT found that the operational creditor had demonstrated the existence of an

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**Interpretation:** Section 9 provides the mechanism for operational creditors to recover their

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**Application:** The court applied Section 9 to the facts of the case, finding that the

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## Parties

- **Judges:** Ajay Kumar…; RAGHU N…; +1 more
- **Appellants:** M/s Pawan Cargo…
- **Respondents:** M/s Bestways…

## Timeline

- **1983-11-16 — Incorporation of…**: M/s Bestways Transport (India) Ltd. was…
- **2011-01-01 — Corporate Debtor…**: The corporate debtor approached the operational creditor and booked several consignments…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 5(6) — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-5)

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